Swadish Business Solutions

Frequently Asked Questions (FAQ)

1. Why use a business broker?

The process of buying or selling a business requires dedication and the attention of a professional with the knowledge of the complete flow of a business transaction, as well as a team in place to accomplish every aspect of the transfer. Marketing and facilitating a business transfer is a full-time job! You deserve someone who will work as hard as you do. A qualified broker will save business owners and prospective buyers money by helping them avoid costly mistakes, effectively marketing the appeal of the business, and maximizing exposure to serious, qualified buyers--all with complete confidentiality.

If you are interested in selling your business and don’t know the answer to any of the questions below, you could benefit from the assistance of a professional broker (and you are not alone!):

How do you reach qualified buyers, including possible competitors, without disclosing your intentions to sell?
How do you evaluate your business objectively to ensure you receive top dollar for your investment and avoid costly negotiating tactics?
How do you prepare and provide the information a prospective buyer will require to interest him in pursuing your business in favor of other options?
How do you arrive at the best price and terms, including the intangible and goodwill values of your business?
How do you maximize your favorable exposure to potential offers while minimizing your potentially damaging public exposure to customers, competitors, employees, and suppliers?
How do you market your business in all of the appropriate markets, databases, and media efficiently, effectively, and confidentially?
How do you screen and pre-qualify buyers, determine their motivations, managerial capabilities, and financial strength?
How do you effectively sell your business, diverting significant time, effort and resources to that process, while continuing to manage your ongoing business productively?

2. Why use a National Affiliate Business Broker?

BBN affiliates successfully transfer more businesses than any other company, selling 80% of our listings, compared to 30% industry wide average.

All the BBN Affiliate Professional Brokers use:

A standardized analytical & pricing methodology.
A proven effective system for successfully marketing businesses that we list.
A Confidential Marketing Memorandum that is very detailed, well organized, and impressive to critical and analytical buyers.
Coordinated efforts focused on selling listings all across the country, with no problems understanding a business being offered, even if it is hundreds of miles away from our own office.
A marketing package that effectively and persuasively answers nearly every question a buyer will have when choosing between many competing options in the business marketplace.

3. Why do I need an independent, third party evaluation?

Swadish Business Solutions uses the services of a third party business valuation company to perform its valuation reports. The third party valuation company used by SBS is the largest third party valuation company in North America. The company performs thousands of business valuations each year. They have the largest database of closed transactions in the nation, and know what the price of other businesses like yours are really producing. Their reports are reader-friendly and should be shown to prospective buyers.

The key to having a viable valuation performed on a business is to have it performed by an independent, third-party service. Without a third-party report, a business owner should be prepared for heavy negotiations because it will be your opinion of value versus a buyer's opinion. A third party evaluation is also required by most financial lending institutions.

4. How will my business be marketed?

The marketing of each business will depend upon the size and type of business. SBS uses several types of media to solicit prospective buyers, including local and national newspapers, including the Wall Street Journal, trade publications and the internet. In addition, qualified buyers from other affiliate offices comprising more than 1,000 individuals, corporate acquirers, and investment groups. Local newspapers are used as little as possible, because it is often more difficult to protect confidentiality when a business is advertised locally. SBS also uses other top business listing sites on the Internet.

5. What do I need to help sell my business?

The first thing you need to do is offer the business at a realistic price and with reasonable terms. You need to provide as much information as is possible to the broker so a professional marketing package, including a business profile, can be prepared on your company. The quality of the business profile will greatly enhance the “sale-ability” of a business. A package prepared by a SBS will contain the financial, operational and historical information about the business. Informed buyers make better offers. Other things a seller can do are:

Continue to run your business in a normal manner.
Keep the business clean and organized (on paper and in person), so potential buyers will like what they see.
Liquidate or set aside obsolete inventory and unneeded equipment before you place the business on the market.
Notify your broker of any material changes in your business
Forward monthly financial statements to the broker as soon as they are completed. This will keep your marketing package current. Do not meet with potential buyers without your broker being present. Avoid direct negotiations.
All offers and counter-offers should be in writing and should be presented by the broker.

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		Swadish Business Solutions Frequently Asked Questions (FAQ) 1. Why use a business broker? The process of buying or selling a business requires dedication and the attention of a professional with the knowledge of the complete flow of a business transaction, as well as a team in place to accomplish every aspect of the transfer. Marketing and facilitating a business transfer is a full-time job! You deserve someone who will work as hard as you do. A qualified broker will save business owners and prospective buyers money by helping them avoid costly mistakes, effectively marketing the appeal of the business, and maximizing exposure to serious, qualified buyers--all with complete confidentiality. If you are interested in selling your business and don’t know the answer to any of the questions below, you could benefit from the assistance of a professional broker (and you are not alone!): How do you reach qualified buyers, including possible competitors, without disclosing your intentions to sell? How do you evaluate your business objectively to ensure you receive top dollar for your investment and avoid costly negotiating tactics? How do you prepare and provide the information a prospective buyer will require to interest him in pursuing your business in favor of other options? How do you arrive at the best price and terms, including the intangible and goodwill values of your business? How do you maximize your favorable exposure to potential offers while minimizing your potentially damaging public exposure to customers, competitors, employees, and suppliers? How do you market your business in all of the appropriate markets, databases, and media efficiently, effectively, and confidentially? How do you screen and pre-qualify buyers, determine their motivations, managerial capabilities, and financial strength? How do you effectively sell your business, diverting significant time, effort and resources to that process, while continuing to manage your ongoing business productively? 2. Why use a National Affiliate Business Broker? BBN affiliates successfully transfer more businesses than any other company, selling 80% of our listings, compared to 30% industry wide average. All the BBN Affiliate Professional Brokers use: A standardized analytical & pricing methodology. A proven effective system for successfully marketing businesses that we list. A Confidential Marketing Memorandum that is very detailed, well organized, and impressive to critical and analytical buyers. Coordinated efforts focused on selling listings all across the country, with no problems understanding a business being offered, even if it is hundreds of miles away from our own office. A marketing package that effectively and persuasively answers nearly every question a buyer will have when choosing between many competing options in the business marketplace. 3. Why do I need an independent, third party evaluation? Swadish Business Solutions uses the services of a third party business valuation company to perform its valuation reports. The third party valuation company used by SBS is the largest third party valuation company in North America. The company performs thousands of business valuations each year. They have the largest database of closed transactions in the nation, and know what the price of other businesses like yours are really producing. Their reports are reader-friendly and should be shown to prospective buyers. The key to having a viable valuation performed on a business is to have it performed by an independent, third-party service. Without a third-party report, a business owner should be prepared for heavy negotiations because it will be your opinion of value versus a buyer's opinion. A third party evaluation is also required by most financial lending institutions. 4. How will my business be marketed? The marketing of each business will depend upon the size and type of business. SBS uses several types of media to solicit prospective buyers, including local and national newspapers, including the Wall Street Journal, trade publications and the internet. In addition, qualified buyers from other affiliate offices comprising more than 1,000 individuals, corporate acquirers, and investment groups. Local newspapers are used as little as possible, because it is often more difficult to protect confidentiality when a business is advertised locally. SBS also uses other top business listing sites on the Internet. 5. What do I need to help sell my business? The first thing you need to do is offer the business at a realistic price and with reasonable terms. You need to provide as much information as is possible to the broker so a professional marketing package, including a business profile, can be prepared on your company. The quality of the business profile will greatly enhance the “sale-ability” of a business. A package prepared by a SBS will contain the financial, operational and historical information about the business. Informed buyers make better offers. Other things a seller can do are: Continue to run your business in a normal manner. Keep the business clean and organized (on paper and in person), so potential buyers will like what they see. Liquidate or set aside obsolete inventory and unneeded equipment before you place the business on the market. Notify your broker of any material changes in your business Forward monthly financial statements to the broker as soon as they are completed. This will keep your marketing package current. Do not meet with potential buyers without your broker being present. Avoid direct negotiations. All offers and counter-offers should be in writing and should be presented by the broker. Contact Us Home \| Things to Consider \| About Us \| FAQ \| Contact Us